Sprint Cancels $3B Convertible Stock Sale

KANSAS CITY, Mo. (AP) - Sprint Nextel said late today it has canceled a proposed 3 billion dollar convertible stock offering that it had announced the day before.

The nation's third-largest wireless carrier yesterday said that it planned to sell 3 million shares of preferred convertible stock and put the proceeds toward debt repayment and other uses.

But Sprint spokesman James Fisher said buyers of the shares were demanding higher rates than the company had anticipated, leading Sprint to drop the deal.

Fisher stressed that the company is in solid financial shape and still plans to pay off around 1 billion dollar in debt during the third quarter. Sprint has about 19.5 billion dollars in outstanding debt, net of cash and marketable securities.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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